YES Bank recovers, jumps 11% from intraday low

NEW DELHI: Shares of YES Bank jumped 11 percent from its intraday low on Thursday. It was up 8 per cent from the previous close. The scrip has gained despite a downgrade in the ratings.

India Ratings and Research downgraded its long- and short-term issuer ratings. The rating agency downgraded the bank’s long-term issuer rating to ‘IND A’ from ‘IND A+’ and its short-term issuer rating to ‘IND A1’ from ‘IND A1+’.

It, however, said liquidity position of the bank seemed adequate at end-September 2019. In the absence of improvements on the capital side, the ability of the bank to manage its asset and liability maturities might be tested further, it added.


"The downgrade reflects the inadequate progress as per Ind-Ra's expectations with respect to the quantum and pace of equity infusions, which is critical for providing sufficient cushion for the credit cost impact of the stressed asset pool," India Ratings and Research said. The bank is likely to face balance sheet expansion challenges over the short-to-medium term, it added.

At the close, the stock was up 6.70 per cent at Rs 49.90.